There have been massive increases in crypto trading volumes using the Ukrainian fiat currency, crypto research firm Arcane Research wrote in its latest weekly update. Meanwhile, the firm has identified USD 47,000 as the next likely target for bitcoin (BTC) after the USD 44,000 resistance has been breached.
“Many Ukrainians worry that the banking system in the country may collapse and are seeking to crypto as a safe haven for their savings,” Arcane wrote in its report.
It added that thanks to the invention of crypto, Ukrainians “now have the ability to escape the country and bring some of their wealth with them.”
Meanwhile, Arcane also commented on the sharply increased crypto trading volumes with Russian rubles, saying it is possible that more Russians now have discovered how stablecoins such as tether can offer an escape from their local fiat currency.
“These volume increases could indicate that Russians seek stablecoins to get dollar exposure ahead of possible sanctions directed towards Russian crypto traders,” the report said.
However, it also warned that the data does not necessarily mean that Russians are now jumping into crypto, noting that it could also be the result of “market makers seeking to eliminate their ruble exposure.”
Commenting on the bitcoin price from a technical perspective, Arcane said that the USD 40,000 level has been tested throughout the weekend, while calling the breakthrough above that level on Monday “convincing.”
Next, it said USD 44,000 remains an important resistance level that bitcoin “has yet to convincingly break.” If the level breaks in a convincing way, USD 47,000 is the next important resistance, Arcane further wrote, while adding that USD 40,000 now acts as the first line of support to the downside.
Lastly, Arcane’s researchers pointed out that the bitcoin dominance – or bitcoin’s share of the overall crypto market capitalization – has risen “significantly” after the war in Ukraine started.
From a bottom of 33.9% in the middle of January, the bitcoin dominance stood at 41.1% as of 12:26 UTC, down slightly from 43% when Arcane’s report was published.